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Team 8 Tahoe Hybrid vs. Tahoe Gasoline

Team Members: Ramiro Alvarez Frank Gundran Minh Tran Matthew Zu. Team 8 Tahoe Hybrid vs. Tahoe Gasoline. Gas vs. Hybrid Facts. We are undertaking the comparison of a Hybrid vs. Gasoline powered Tahoe to see which of the two is truly a smart buy. We will be assuming:

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Team 8 Tahoe Hybrid vs. Tahoe Gasoline

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  1. Team Members: Ramiro Alvarez Frank Gundran Minh Tran Matthew Zu Team 8Tahoe Hybrid vs. Tahoe Gasoline

  2. Gas vs. Hybrid Facts • We are undertaking the comparison of a Hybrid vs. Gasoline powered Tahoe to see which of the two is truly a smart buy. • We will be assuming: • 15,000 miles per year • 5 years of ownership cost • Both Vehicles $5000 as down payment • $3.50 per gallon nominal gas price • Gas Tahoe - $47,917, 15 mpg (conservative driving) • Hybrid Tahoe - $50,031, 21 mpg • Both vehicles were packaged to cost as similarly as possible.

  3. Scenarios • Scenario 1 • Comparison with maintenance, repair, gas, and monthly payment—as the assumptions state. • Scenario 2 • Comparison without maintenance and repair. • Scenario 3 • Comparison change in gas price and including maintenance and repair. • Scenario 4 • Comparison with changing annual mileage and still including maintenance and repair.

  4. Scenario 1Gas vs Hybrid with all cost factors • Monthly payment • Maintenance and repairs • Gas cost • The unpredictable maintenance estimates make the plots difficult to predict, but if we remove these factors…

  5. Scenario 2 Gas vs. Hybrid (w/o Maintenance & Repairs) • Same down and monthly payment as before • NO maintenance or repair costs • Fuel is the only cost considered • Here, without the erratic maintenance costs, it becomes clearer.

  6. Scenario 3Gas Fluctuation Analysis (w/ maintenance) • $3.50 was used as a nominal price (ignoring the current dip in oil prices). • The cost gap between the Gasoline and Hybrid versions increases along with a rise in fuel prices. • The Differences is a linear relationship, according to the Progression column.

  7. Scenario 4Annual Mileage Analysis(w/ maintenance) • Change in annual mileage changed price of gas • EUC price for hybrid always lower • As miles increase per year, EUC price increases

  8. Conclusions • Under our analysis, the Tahoe Hybrid is a better value, as far as ownership cost data exists for the first 5 years. • Based on vehicles packaged with similar options. • Based on conservative driving of the Gasoline Tahoe to yield an average of 15 mpg.

  9. Resources • www.chevrolet.com • www.edmunds.com • www.autos.aol.com

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